The New York Post is facing allegations of racism and sexism in a lawsuit brought by a disgruntled former employee.

Sandra Guzman was sacked by the newspaper at the end of September and believes she was targeted because she had spoken out about discrimination at the paper, and because she is black and female.

In documents filed in the District Court in New York, Ms Guzman says there is a culture of discrimination at The Post that goes all the way to the top.

"Behind the trumpeted headlines and within the four walls of The Post there exists a hostile work environment where female employees and employees of colour have been subjected to pervasive and systemic discrimination and/or unlawful harassment based on their gender, race and/or national origin," reads an excerpt from the complaint.

Ms Guzman relates a series of alleged incidents involving executives from the newspaper making sexist, offensive and racist remarks.

"Virtually all the executives, managing directors and news reporters are white males who wield enormous power and influence at the company," she said.

The paper's editor, Australian Col Allan, earned the nickname Col Pot for his take-no-prisoners approach to editing Sydney's Daily Telegraph.

And Ms Guzman also tells a story familiar to Australian political watchers, where Mr Allen took Australian Prime Minister Kevin Rudd on a night on the town.

"Allan took two Australian political leaders to the strip club Scores where they watched strippers perform, reportedly had too much to drink and were ejected from the club by its bouncers," she said.

'Racist' cartoons

Ms Guzman says the culture of racism and sexism also results in the newspaper targeting people outside the company through offensive headlines, stories and insulting and degrading cartoons.

In February this year, police in Connecticut shot dead a pet chimpanzee that had attacked and nearly killed a woman.

The following day the New York Post published a cartoon depicting a chimpanzee that had been shot by police.

One of the officers says to the other, "They'll have to find someone else to write the next stimulus bill".

Protesters gathered outside The Post's headquarters, angry because they believed the cartoon was a reference to President Barack Obama.

Ms Guzman said she had complained about the racist overtones and senior editors were aware of the links, but they published the cartoon anyway.

"There is no doubt the chimpanzee pictured shot to death and lying in a pool of blood with three bullet holes was intended to be President Obama," she said.

"The decision to publish the racist cartoon was part of a concerted effort to undermine President Obama's authority and attack the first African-American President."

She says when she became publicly identified as having complained about the cartoon, she was targeted.

Her claim was filed in court this week and The Post has responded.

"This lawsuit has no merit and is based on charges that are groundless," a spokeswoman told The World Today.

"Ms Guzman's position was eliminated when the section she edited was discontinued due to a decline in advertising sales."